JOHANNESBURG (miningweekly.com) – Jubilee Metals has executed an agreement with Eland Platinum, a wholly-owned subsidiary of Northam Platinum, for the processing of platinum-rich PlatCro material, post-chrome removal.
Under the terms of the agreement, Jubilee will deliver 60 000 t/m of PlatCro material to Eland, starting in June.
A stockpile of about 290 000 t of material will be built up to the end of January 2019, with the Eland processing plant to start processing the material at a rate of 60 000 t/m from February 2019.
Eland will recover the contained platinum-group metals (PGMs) at a targeted rate of about 2 800 oz/m, which will result in estimated revenue of $2.4-million a month.
All earnings generated from the sale of the recovered PGM ounces will be shared at an agreed earning split, with Jubilee retaining a significant majority of the earnings.
“I am pleased to announce our processing agreement with Northam. The structure of the agreement captures the intent of both companies to develop a lucrative partnership in the processing of PGM and chrome-rich material,” Jubilee CE Leon Coetzer commented on Wednesday.
He added that it also opens the door to grow the company’s partnership to engage in similar further opportunities with one of the world’s largest platinum producers.
“I am looking forward to working closely with the Northam team as we share our processing capabilities and expertise to maximise value extraction from the PlatCro PGM rich material.”